WHAT TO DISCUSS ?

1 2 3
Feasibility
Feasibility Business study
Study Plan vs.
Business Plan
N e m e l y n J o y L a g u i t a n
 Feasibility Study

Feasibility study is related It involve the process of

to analyse the viability of appraising projects or
the identified project to group of projects and then
support decision making choosing to implement
of investment. some of them

This is the study of a

proposed project to indicate
whether the proposal is
attractive enough to justify
more detailed preparation
Key factors looked at in a feasibility study

Availability of adequate market

Growth potential of the project

Investment, operation and distribution costs

Demand and supply factors

Social and environmental conditions

 Feasibility Analysis: A Schematic Diagram
I
Generation
n
of ideas Prepare
i
Funding
Initial t Conduct Proposal
i Market
Screening Analysis
a Initi
Initi Conduct
l al
Economic
Is thealIdea Plan S and Is the project
Scre
PrimaScre
Facie Feasibility Ecological Worthwhile?
c eni
eni
Promising? Analysis analysis
r ng
ng
e
e Conduct
n Technical Terminate
Terminate i Analysis
n
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Why conduct a Feasibility Study?

- To find if there is adequate demand for the project’s output.

- To find if there is availability of suitable technology and inputs
- To find the best options
- To answer if the project meets the environmental regulations and
priority of the nations
- To examine the project’s financial and economic viability
Areas of Analysis in Feasibility study
01 02
Demand/ 05
Need and Technical
Market Analysis
Economic
Analysis …
Analysis
… 04
…
Financial
03 Analysis
… 07
Management
Analysis
Social Analysis
…
06
…
Environmental
Analysis

…
Market and Market and demand analysis look at the
Demand Analysis need of the project and help to estimate
demand

It is the key activity for determining the

scope of an investment, the possible
production programs, the technology
required and often the choice of location.

The analysis cover mainly:

-Aggregate demand for the product/service
-The share of unfulfilled demand
-Demand forecasting
-Market price of product/service
-Analysis of competitors, their strength weakness
Distribution mechanism
Technical Analysis • Every project must be technically feasible.

• Technical analysis is related to examine whether

the project under study is technically feasible to
setup and operate to produce service/product.

• Investment cost and operational cost of

different technology/process
• Environmental aspects of different technology
• Location aspects of the project and availability
of infrastructural facilities with probable
alternative locations
• Inputs: Availability of electricity, water, fuel, raw
materials
• Size and scale of operations: based on the
demand, capital requirement, and technology,
inputs available
Management • If the management is incompetent, even a
Analysis good project may fail. So it looks at:

• Types of organization

• Academic qualification, and experience of key

persons

• Availability of personnel required for project

execution.

• Assessment of other specific skills required for the

project

• User’s role in case of development projects etc.

Financial Analysis • The scope of financial appraisal varies
considerably with the nature of project and
whether it is revenue producing (e.g. industry,
agriculture) or not (e.g. roads, public schools).

• Financial analysis covers:

• Investment Cost Estimation

• Operating Cost Estimation

• Benefits Estimation

• Cost Benefits Comparison

• Project Selection Decision

Economic Analysis • Economic analysis estimate and analyze the
project’s net contribution to the whole economy
of the region or country.

• It helps determine whether the project increases

the net wealth of a region or country as a whole
or not.

• Estimation of Economic Costs of Projects

• Estimation of Economic Benefits of Projects

• Comparing Costs and Benefits

Environmental • A project may causes environmental impacts in
Analysis many ways

• Identification and analysis of adverse effects on

the environment

• Identification of positive impacts

• Required Mitigation measures

• Designing environmental management plan

• Provision of fund for environment management

plan
Social Analysis • A project may causes social impacts in many
ways

• Will the project have any adverse effects on the

society?

• What are positive and negative impacts

• Viable measures to address negative impacts

• Estimating cost for addressing social impacts

 Completing the Feasibility study

• The feasibility study should act as a springboard for the next

phase in the project life cycle. – design and appraisal –
ensuring that it is able to commence in a focused way. The end
product of Feasibility Study should therefore comprise a clear,
concise report, called Feasibility Study Report
E N T R E P R E N E U R S H I P
 Business Plan

A Business Plan identifies Key investors will want to

key areas of your business look at your Business Plan
so you can maximize the before providing capital.
time you spend on
generating income.

A Business Plan helps

you start and keep
your business on a
successful path.
Reasons Why You Need a Strong Business Plan

To attract investors.
To see if your business ideas will work.
To outline each area of the business.
To set up milestones.
To learn about the market.
To secure additional funding or loans.
To determine your financial needs.
To attract top-level people.
To monitor your business.
To devise contingency plans.
How Detailed Should Your Plan Be?

Business plans differ widely in their length, appearance, content, and

the emphasis placed on different aspects of the business.
Depending on your business and your intended use, you may need a
very different type of Business Plan:
Mini-plan: Less emphasis on critical details. Used to test your
assumptions, concept, and measure the interest of potential
investors.
Working Plan: Almost total emphasis on details. Used continuously to
review business operations and progress.
Presentation Plan: Emphasis on marketability of the business concept.
Used to give information about the business to bankers, venture
capitalists, and other external resources.
Common Parts of a Good Business Plan
01 02
Executive 05
Summary Business
Concept
Marketing
…
… Plan
04
…
Management
03 Team
… 07
Market
Analysis Operations
and
…
06 Management
Plan
…
Financial Plan

…
Goals of Business • Consider important aspects and decide
Plan whether to “go or no go”

• Initial planning document for a new business

• Serves as a tool to communicate the idea of the

new venture to potential investors, bankers, key
employees

• Serves as a record to monitor and compare

results

• To develop a document that presents a picture

of the business, where the business is going, and
how it will get there

• To understand the organization of a business

plan
Who Needs to • Most banks loaning money, especially if the
Write/See the business does not have a track record
Business Plan?
• Farmers, to insure they have considered
everything

• Investors or partners who have some doubts

about your abilities/integrity

• Highly required or important potential

employees

• Anyone wondering if they should take the risk

Be sure that . . .

• Your goals are tied to your vision

• You can point to major opportunities

• You’re prepared for threats

• You’ve described your customers

• You know your strengths/weaknesses

• Your strategy makes sense

• Your data is accurate

• You’re really ready for change

• Your plan is clear, concise, and current

AFeasibility
feasibilitystudy
studyoutlines
is filled with
answers calculations,
the bottom
and analyzesline analysis
question—Is
several and
this venture
alternatives or
estimated
methods projections
going to make
of money?business success
achieving

is prepared
Business plan considers
deals only
withthe
only after the venture
management
one alternative has been
side—goals
or scenario
andthat is
deemed toofbe
determined
objectives feasible
tothe
beplanned
the “best”
business
alternative
venture
• A feasibility study is all • business plan is made up of mostly
about business idea tactics and strategies to be
viability while a business implemented in other to grow the
plan deals with business business.”
growth plan and
sustainability.
• A feasible business venture is
one where
• the business will generate
adequate cash flow and profits,
• the business will withstand the
risks it will encounter,
• the business will remain viable in
the long-term, and
• the business will meet the goals
of the founders.
• A Business Plan summarizes the plan of
action after a course of action has been
determined through the Feasibility Study
• A Business Plan provides a Planning
function
• A Business Plan outlines the actions
needed to take the proposal from “idea”
to “reality”
• A Business Plan tells How your business will
be created and Why it will be successful
• A Business Plan provides a road map for
strategic planning
• A feasible business venture is
one where
• the business will generate
adequate cash flow and profits,
• the business will withstand the
risks it will encounter,
• the business will remain viable in
the long-term, and
• the business will meet the goals
of the founders.
• A Business Plan summarizes the plan of
action after a course of action has been
determined through the Feasibility Study
• A Business Plan provides a Planning
function
• A Business Plan outlines the actions
needed to take the proposal from “idea”
to “reality”
• A Business Plan tells How your business will
be created and Why it will be successful
• A Business Plan provides a road map for
strategic planning
Screening opportunities to decide the conditions under which you
are willing to go forward

Execution plan for implementing the business

Casey Stengel

“If you don’t know

where you’re going,

you may end up

somewhere else.”